Asset allocation...is the overwhelmingly dominant contributor to total return.
--Gary Brinson, Brian Singer and Gilbert Beebower
Most investors concentrate on trying to choose the best stock and pick the perfect moment to buy or sell. It's a waste. What really matters to your long-term returns is asset allocation--that is, how you split up your portfolio.
Since researchers dropped this bombshell 20 years ago, experts have debated the size of the asset-allocation factor. Some say it accounts for 40% of the variation in investors' returns; others (like the original researchers) say 90%. But no one refutes that it's major. For help getting the best mix for your goals and risk tolerance, see the Asset Allocator tool.
 Brian Singer
5. It's the portfolio, stupid |  Everyone's got concerns when it comes to money, but some have fears that can really put a big hole in their financial future. Here's how to overcome five common ones. (more)  The answer has nothing to do with finding the single perfect stock or mutual fund. The key is changing your idea of what the 'right' investment really is. (more) |
